El Paso Fire Chief Samuel Peña, left, listend with other members the department's management to debate on the El Paso Fireman's and Policeman's Pension Fund at Tuesday's city council meeting. (Rudy Gutierrez/El Paso Times)

The results of an audit into the El Paso Firemen and Policemen's Pension Fund due out today could dictate whether the City Council calls for a formal investigation of the troubled fund.

The City Council on Tuesday opted to wait to read the results of an audit into the fund by the nationally recognized firm Gallagher Benefit Services before considering an investigation. The audit was to evaluate the fund's investments and make recommendations on how to solve the fund's shortfall.

The council also postponed for one week voting on whether to support state legislation that clarifies the use of public dollars to support the pension fund. The legislation would allow the city to decrease its contribution rate when its rate -- combined with the rate paid by the fund's members -- is enough to cover the amount of retirement owed to employees in future years.

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Cindy Ramirez

"It's easy to promise, but it's really hard to fund," said city Rep. Cortney Niland, who has asked the city to see what authority it has to investigate the fund.

On Tuesday, she proposed that the council discuss restructuring the pension fund board, implementing term limits and conducting a managerial audit of the fund. The Gallagher study was not designed to look at best practices as Niland and other council members are proposing.

But Lauren Francis, intergovernmental affairs coordinator for the city, said the city has its hands tied when it comes to restructuring the makeup and function of the fund board because it is regulated by state statute. The pension fund board consists of six firefighters and policemen, and five city appointees.

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In a 6-2 vote Tuesday, the council voted to wait for the audit by Gallagher, the firm that in 2007 developed a plan that solved the nearly $400 million pension fund deficit. City Reps. Carl Robinson and Michiel Noe voted against the postponement.

Using taxpayer money, the city finances 60 percent of the $1.1 billion pension fund while police and firefighters finance the rest through contributions from paychecks.

Now facing a $270 million shortfall, the pension fund has asked the city to pump in $4 million annually while also asking its members to increase contribution rates to $3 million annually.

The pension fund board chairman, police Lt. Tyler Grossman, said Tuesday that the proposed legislation would allow the city to remain in the driver's seat of the fund. He said he doesn't believe the investigation is necessary in light of the Gallagher audit that will report on the health of the fund.

Grossman also said that the fund board will meet Thursday to discuss hiring an independent auditor to look into the policies and procedures of the board.

The fund, which combines both police and fire pensions, is giving out more in benefits than it is taking in from investments and payments, partly due to a retiree membership of 1,400 and just about 1,800 current contributors.

The latest request for more funding has raised concerns about the fund's sustainability and questions about how much taxpayers should contribute.

The city pumped $210 million into the fund about four years ago, when it negotiated with the fund for police and firefighters hired after 2007 to give up $186 million in benefits by moving retirement age from 45 and 20 years of service to age 50 and 25 years of service.

The police and firefighters also gave up cost-of-living increases after retirement. The 3 percent cost-of-living increases, however, must still be given those "grandfathered" into the system before 2007.

The council on Tuesday didn't discuss Robert Stanton, the fund's executive director, who was sued by a city pension fund in Manchester, N.H., for which he previously worked. Stanton was accused of improperly paying himself overtime and charged nonbusiness items to the fund. He settled the case for $30,000 but didn't admit guilt.

Stanton had resigned from his current position but within a few days retracted his resignation after the pension board gave him a vote of confidence.